38.

Simone transferred 100 percent of her stock in Purple Company to Plum Corporation in a Type A merger. In exchange, she received stock in Plum with a fair market value of $577,500 plus $577,500 in cash. Simone's tax basis in the Purple stock was $200,000. What amount of gain does Simone recognize in the exchange and what is her basis in the Plum stock she receives? Multiple Choice $955,000 gain recognized and a basis in Plum stock of $577,500. $577,500 gain recognized and a basis in Plum stock of $577500. $577.500 gain recognized and a basis in Plum stock of $200.000 $955.000 gein recognizec and a besis in Pium stock of $1 55 000